To make a sound decision, it’s always a good idea to compare interest rates, calculate EMIs, and consider different terms to verify financial responsibility before making a final call.
Thinking of buying your own vehicle with advanced features? Many people plan to buy their car at the start of a new year due to the new launches and attractive offers that automakers are offering to customers during this time.
Car loan plays a key role in helping us obtain funds for a new vehicle. Whether it’s buying a new car or upgrading it, you need to carefully weigh all the pros and cons. When you apply for a car loan, you pay a deposit and the remaining amount is paid by the banks. A borrower pays the auto loan in installments with interest. The loan amount can be decided based on your fund requirements, monthly income and credit score.
Auto loans can help you buy your dream car, even if you don’t have the money up front. EMIs with reasonable interest rates make auto credit accessible to anyone who wants to own a vehicle. When it comes to tenure, people usually choose up to 5 years. However, some people also opt for auto loans beyond 5 years to pay lower EMIs or when they need a larger auto loan.
Many banks offer flexible mandates and even allow you to choose the mandate that best suits your needs. Options to choose payment methods, whether automatic debiting of monthly installments from your bank account or post-dated checks, are also available to customers. It is advisable to choose the right type of car loan, but some people find this difficult. To make a wise decision, it’s always a good idea to compare interest rates, calculate EMIs, and consider different terms to verify financial responsibility before making a final call, according to Bankbazaar.
Car loans are mostly short-term, so you might even want to consider prepayment when you have extra funds to do so. While taking a car loan, apart from interest rates, you should also check for flexible tenure options, flexible monthly installment options, and other features.
Several banks offer lucrative interest rates on car loans. You can choose according to your own needs. Currently, interest rates are low and if your credit score is above 750, your chances of getting the best deals also increase. A word of advice is that you should pay your car loan EMIs on time to avoid late penalties and being classified as a defaulter. If you don’t repay, the banks can seize the car to recover the arrears.
Below are the banks offering lucrative offers on interest rates to customers who are considering taking out a car loan. You can compare and make a decision that suits your needs.
Interest rate and EMI on a new car loan of Rs 10 Lakh for a term of 5 years
Compiled by BankBazaar.com
Note: car loan interest rate (excluding e-vehicle) for all listed public and private banks (ESB) taken into account for data compilation (excluding small finance banks); Banks whose data is not available on their website are not taken into account. Data collected from respective bank’s website as of 02 February 2022. Banks are listed in ascending order on the basis of interest rate, i.e. the bank offering the lowest interest rate on the car loan is placed at the top and the highest at the bottom. The lowest interest rate offered by banks, regardless of the loan amount, is shown in the table. The EMI is calculated on the basis of the interest rate mentioned in the table for the Rs 10 Lac loan with a tenor of 5 years (processing fees and the like are assumed to be zero for the calculation of the EMI); The interest mentioned in the table is indicative and may vary depending on the general conditions of the bank. * Min interest based on APR for the quarter ended December 2021; ^ Rack Interest Rates.